An entertainment event of Jadu circus is organized and local authorities levy entertainment tax of Rs. 1 on the ticket value of Rs. 20 for circus. Whether entertainment tax levied by local authority will form part of value of service for the purpose of GST?

Ans . Section 15 of CGST act specifies that any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than CGST Act, the SGST Act, the UGST Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier shall form part of value of services. GST subsumed all taxes except property tax, entertainment and amusement to the extent levied by local bodies. Thus the entertainment tax levied by local authority shall form part of value of supply i.e. Rs 20 + Rs. 1 = Rs. 21.Thus GST would charge on Rs. 21.